The layoffs are reportedly expected to impact 200 employees, whose access to email and Slack IDs was disabled without any prior notice
A Mojocare spokesperson pegged the number of impacted employees at 150-170 and attributed the layoffs to the startup’s efforts to rationalise cost and prioritise profitability
The layoffs come barely ten months after the healthtech startup raised a funding of $20.6 Mn from B Capital, Chiratae Ventures, Peak XV Partners’ Surge and Better Capital
The spree of layoffs at Indian startups continues unabated. This time, healthtech startup Mojocare has reportedly fired more than 80% of its workforce as part of its cost rationalisation drive and focus on profitability.
A source told Entrackr that more than 200 employees are expected to be impacted by the mass firings, while a spokesperson of the startup pegged the number at 150-170 employees.
“Mojocare has fired over 80% staff and left with few people to operate the company… More than 200 employees are expected to be impacted by the decision,” the report cited a source as saying.
The impacted employees’ access to email and Slack IDs were reportedly disabled without any prior notice.
Inc42 has reached out to the startup and its founder Rajat Gupta for a comment on the layoffs. The story will be updated on receiving a response from them.
Meanwhile, the spokesperson told Entrackr, “…Despite our best efforts, our business fundamentals have not worked out over the past few months. In order to become more capital efficient, we have decided to rationalise costs. In order to prioritise profitability and sustainability, we must revert to operating as a small yet robust team, allowing us to figure out what’s best for the company going forward.”
The development comes nearly 10 months after Mojocare raised a funding of $20.6 Mn from the likes of B Capital, Chiratae Ventures, Sequoia India’s Surge and Better Capital.
Founded in 2020 by ex-Chiratae executive Ashwin Swaminathan and former Mobile Premier league vice president Rajat Gupta, Mojocare is a digital wellness platform that offers personalised care delivery systems for areas such as sexual wellness, women’s wellness, mental wellness and hair loss. It also connects users with nutritionists, therapists, health coaches and doctors on its platform.
The startup has raised $24 Mn in funding till date and was last valued in the range of $70-75 Mn during the last capital raise in 2022.
With the firings, Mojocare has joined the long-list of Indian startups which have laid off employees since 2022 on account of the ongoing funding winter, adverse market conditions, and no clear path to profitability.
Earlier this week, Inc42 exclusively reported about IPO-bound Mamaearth’s decision to shut down influencer engagement arm Momspresso MyMoney and Momspresso’s brand marketing vertical, which led to 80-100 employees losing their jobs. Nasdaq-listed SaaS giant Freshworks also undertook its third round of layoffs, earlier this month, which largely impacted multiple teams in the US.
In total, Indian startups have laid off more than 27,100 employees till date since 2022.